An insurer is trying to walk away from defending a wrongful death lawsuit tied to a nursing home fall, claiming the policy was already canceled.
That’s the crux of a complaint filed Sept. 8 in federal court by StarStone Specialty Insurance Company, which is asking a judge to confirm it doesn’t owe coverage – or even a defense – to Caring First, Inc., the operator of Breese Nursing Home in Illinois, or its president, Ahsan Usman. StarStone also wants the option to recover its legal fees.
At the heart of the dispute is timing. According to the complaint, a resident named Carol A. Bishop was admitted to Breese Nursing Home on Sept. 7, 2024. Less than a month later, on Oct. 3, she allegedly suffered a fall that resulted in a closed intertrochanteric fracture of her left hip. She died on Oct. 19. Her estate filed a wrongful death and survival action on May 30, 2025, in the Circuit Court of the Third Judicial Circuit in Madison County, Illinois.
Here’s where things get complicated for the insurer. StarStone says it had issued a long-term care organization liability policy to Breese that was originally scheduled to run from Jan. 3, 2025, to Jan. 3, 2026. But the policy was canceled by the insured, effective May 25, 2025, at 12:01 a.m. – five days before the lawsuit was filed.
In its filing, StarStone says the policy clearly stated that it wouldn’t be responsible for any claims made after the cancellation date. The complaint references Endorsement No. 12, which states: “The Insurer shall not be liable for any Claim made against any Insured on or after the Effective Date of this Endorsement.”
Because the lawsuit came after that date, StarStone argues, the claim falls outside the coverage period. The insurer also notes that Breese did not qualify for the automatic extended reporting period because it canceled the policy, and it did not purchase supplemental extended reporting coverage.
StarStone further argues that Mr. Usman is not an “Insured” under the policy. According to the complaint, while the company agreed to provide him with a courtesy defense as the owner of Breese, it explicitly stated that he would not be entitled to indemnity coverage. In a reservation of rights letter sent July 30, 2025, StarStone recommended that Mr. Usman notify any other insurer that might offer him personal coverage.
Still, StarStone hasn’t pulled its defense entirely. The company confirmed in an Aug. 20, 2025, supplemental reservation of rights letter that it would continue to defend Breese and Mr. Usman for now – but only under a complete reservation of rights. The letter also explained that StarStone reserved the right to stop defending once the applicable policy limits were exhausted, and that it could seek reimbursement for defense expenses “in relation to any Claim or any portion of a Claim that is not insured under the Policy.”
In that same letter, StarStone raised a potential conflict of interest and advised the defendants that they had the option to select independent counsel at the insurer’s standard rates, or waive the conflict and proceed with StarStone-appointed counsel.
What this case underscores is something insurance professionals know all too well: timing matters. Whether it's a liability claim from a nursing home, a directors and officers issue, or anything else in commercial lines, the exact moment a claim is made can determine whether coverage kicks in.
